Ugro Capital Limited (UGROCAP) AI Stock Analysis

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Ugro Capital Limited

(NSE:UGROCAP)

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Rating:53Neutral

Price Target:INR 73.00▲(1.86% Upside)

Action:reiterated

Date:08/06/26

The score is held back mainly by higher balance-sheet risk (debt-to-equity ~3.55x) and historically unstable cash flows despite a 2026 improvement, alongside weak long-term price trend/momentum (well below the 200-DMA, negative MACD). These risks are partially offset by strong revenue growth and an inexpensive valuation (P/E 6.82).

Positive Factors

Focused MSME Lending ModelThe company serves a large, specialized borrower segment through sector-focused underwriting and multiple distribution channels. This model can support repeatable origination, better borrower selection, and scalable expansion while maintaining a clear strategic focus in the credit-services market.

Negative Factors

Elevated LeverageHigh leverage reduces financial flexibility for a credit-services company and increases sensitivity to funding costs, refinancing conditions, and credit stress. Because debt-to-equity has stayed elevated for several years, this is a persistent balance-sheet constraint rather than a temporary fluctuation.

Ugro Capital Limited (UGROCAP) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 10.82B
Dividend Yield: ―
Average Volume (3M): 32.63K
Price to Earnings (P/E): 4.8
Beta (1Y): 1.26
Revenue Growth: 35.80%
EPS Growth: -5.33%
Country: India
Employees: 2,095
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

Ugro Capital Limited Business Overview & Revenue Model

Company Description

UGRO Capital Limited functions as a non-banking financial company primarily engaged in offering various lending services. The firm provides business financing specifically targeting diverse sectors such as healthcare, education, chemicals, food proce...

How the Company Makes Money

UGRO Capital primarily makes money through a lending (credit) business model. Its main revenue stream is interest income earned on loans extended to MSME customers: the company borrows funds (e.g., via bank lines, market borrowings, securitisation/as...

Ugro Capital Limited Financial Statement Overview

Summary

Top-line growth is a positive (2026 revenue up 14.56%) and net margins are healthy (11.86%), but the financial profile is constrained by high leverage (debt-to-equity ~3.55x) and historically volatile cash generation (multi-year negative operating/free cash flow before turning positive in 2026). Mixed operating profitability signals also raise earnings-quality risk.

Income Statement

62Positive

Balance Sheet

44Neutral

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	19.47B	14.74B	9.64B	7.07B	4.88B	2.68B
Gross Profit	7.35B	2.23B	1.29B	995.24M	678.77M	624.11M
EBITDA	3.16B	-140.04M	2.62B	2.19B	1.07B	348.23M
Net Income	2.09B	1.75B	1.44B	1.19B	397.76M	145.51M
Balance Sheet
Total Assets	0	140.75B	91.68B	62.80B	43.06B	28.54B
Cash, Cash Equivalents and Short-Term Investments	0	18.25B	5.53B	883.64M	2.12B	1.60B
Total Debt	0	108.68B	69.04B	46.53B	31.49B	18.31B
Total Liabilities	-29.06B	111.69B	71.22B	48.42B	33.22B	18.88B
Stockholders Equity	29.06B	29.06B	20.46B	14.38B	9.84B	9.67B
Cash Flow
Free Cash Flow	-669.50M	1.71B	-25.00B	-15.38B	-12.61B	-11.46B
Operating Cash Flow	-556.27M	2.14B	-24.74B	-15.35B	-12.20B	-11.32B
Investing Cash Flow	-3.88B	-19.64B	-799.24M	-2.30B	-845.42M	413.80M
Financing Cash Flow	15.07B	27.51B	26.55B	18.14B	12.79B	10.23B

Ugro Capital Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price71.67

Price Trends

50DMA80.61Negative

100DMA88.01Negative

200DMA99.65Negative

Market Momentum

MACD-3.13Positive

RSI36.99Neutral

STOCH46.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UGROCAP, the sentiment is Negative. The current price of 71.67 is below the 20-day moving average (MA) of 75.89, below the 50-day MA of 80.61, and below the 200-day MA of 99.65, indicating a bearish trend. The MACD of -3.13 indicates Positive momentum. The RSI at 36.99 is Neutral, neither overbought nor oversold. The STOCH value of 46.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UGROCAP.

Ugro Capital Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:UGROCAP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SBFC	77Outperform	INR 98.91B	19.87	―	―	28.39%	28.14%
IN:MASFIN	66Neutral	INR 49.19B	11.55	―	0.75%	22.71%	23.45%
IN:PAISALO	59Neutral	INR 71.91B	26.03	―	0.13%	23.67%	26.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:UGROCAP	53Neutral	INR 11.06B	4.83	―	―	35.80%	-5.33%
IN:INDOSTAR	48Neutral	INR 31.95B	-7.94	―	―	-1.90%	-151.41%
IN:MUTHOOTMF	40Underperform	INR 26.98B	26.00	―	―	5.19%	―

* General Sector Average

Performance Comparison

IN:UGROCAP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:UGROCAP	Ugro Capital Limited	71.67	-102.33	-58.81%
IN:INDOSTAR	IndoStar Capital Finance Limited	191.70	-62.20	-24.50%
IN:MASFIN	MAS Financial Services Ltd.	265.50	-37.03	-12.24%
IN:MUTHOOTMF	Muthoot Microfin Ltd	154.85	-11.35	-6.83%
IN:PAISALO	Paisalo Digital Ltd.	75.60	39.37	108.69%
IN:SBFC	SBFC Finance Limited	92.04	-20.21	-18.00%

Ugro Capital Limited Corporate Events

Ugro Capital Sets Earnings Call to Discuss Q2 and Half-Year FY27 Results

Oct 29, 2026

Ugro Capital Limited has scheduled an earnings conference call on 6 November 2026 at 4:00 p.m. IST to discuss its unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. The call, compliant with...

Ugro Capital Publishes Hearing Notice for Amalgamation with Profectus Capital

Oct 24, 2026

Ugro Capital Limited, a Mumbai-based non-banking financial company listed on BSE and NSE, operates in India’s credit and financial services market and caters to a wide set of shareholders and creditors. Its governance and disclosure practices a...

Ugro Capital to Raise USD 10 Million via Dollar-Denominated Bonds

Oct 9, 2026

Ugro Capital Limited has approved the allotment of up to 1,000 senior, unsecured, rated and listed U.S. dollar-denominated redeemable non-convertible bonds, each with a face value of USD 10,000. The private placement issue, aggregating up to USD 10 m...

UGRO Capital Raises Short-Term Funds via New Commercial Paper Allotment

Sep 9, 2026

UGRO Capital has approved a fresh allotment of commercial papers as part of its routine funding strategy, with the board’s Investment and Borrowing Committee clearing the issuance on 9 September 2026. The commercial papers, carrying a face valu...

UGRO Capital Sets September Meetings on Profectus Amalgamation

Aug 14, 2026

UGRO Capital has dispatched notices to convene separate meetings of its equity shareholders, secured creditors and unsecured creditors to consider and approve a proposed Scheme of Amalgamation with Profectus Capital Private Limited. The meetings, dir...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 06, 2026

Ugro Capital Limited AI Stock Analysis